Betfred is preparing to streamline its business in the UK with the closure of over a hundred locations across the country. Unfortunately, this scale-down is expected to affect as many as 600 people.
Betfred to Reduce Its Number of Shops
Betting operator Betfred has confirmed plans to close some 132 shops across the UK. To put things into perspective, this represents roughly a tenth of Betfred’s shop portfolio in the country. As a result of the scale-down, roughly 600 jobs will be lost. Betfred emphasized that it is currently consulting everyone who will be affected by the cuts.
Betfred’s CEO, Joanne Whittaker, commented on the matter, acknowledging that this is not happy news. She explained that the decision to scale down the company’s retail presence in the UK comes due to the combined impact of inflation, gambling tax increases, and higher employer National Insurance contributions.
These are well-run shops, staffed by dedicated colleagues, and it is incredibly hard to see any of them close, but the current fiscal and regulatory environment has made it impossible to keep trading all our shops.
Joanne Whittaker, CEO, Betfred
Whittaker added that her team’s current priority is supporting everyone affected.
The Move Was Not Entirely Unexpected
The closures and layoffs are not entirely unexpected, since Betfred had previously warned that cuts might be on the table. Fred Done, the company’s co-founder & chair, had previously stated that the tax hike outlined in the Autumn Budget could force the operator to reduce its UK presence. While the closures are not as serious as Done had suggested they could be, they still reflect the broader effect of the tax hikes paired with overall macroeconomic uncertainty.
The regulatory and tax direction of the UK has been a major point of contention, with multiple gaming industry stakeholders expressing concerns about the rising taxes and new regulations. Industry bodies, such as the BGC, have previously issued warnings that an unfavorable regulatory framework and tax regime would undermine the regulated gaming industry’s ability to compete, allowing unlicensed companies to take a larger market share.